Effective January 1, 2026, Illinois removed the 200-transaction threshold from its economic nexus rule. Remote sellers now trigger Illinois sales tax collection only when they exceed $100,000 in cumulative gross receipts from sales sourced to Illinois in the preceding twelve months — a single-metric test instead of the previous OR rule.
Why it matters
Low-price sellers benefit most. A subscription box at $9.99 that ships 300 Illinois orders per year used to trigger nexus at just $2,997 in revenue — a tiny liability that still imposed full registration, collection, and filing obligations. Now those sellers only register after crossing the $100K revenue bar.
Illinois joins a growing list of states that have dropped transaction-count thresholds:
- Washington — removed 2020
- California — never added (moved to $500K-only in 2019)
- North Carolina — removed 2024
- Illinois — removed 2026
Action items
- If you registered in Illinois solely because of the 200-transaction threshold and your Illinois revenue is below $100K, you can request deregistration once you've filed final returns.
- Update your nexus monitoring dashboards to reflect the new rule — spreadsheet formulas or automated services should drop the transaction-count check for IL.
- Continue filing through the end of any current registration period even if you're under threshold — partial-year deregistration may require a specific request.
Further reading
See our full Illinois sales tax nexus guide for current rates, filing cadence, and marketplace facilitator details, or use the nexus calculator to test your current Illinois exposure under the new rule.